The Mortgage Blog

Ok there has been a lot of discussion about the extension of the tax credit so let me try and clear up some of the confusion in this blog. On June 28th it had become somewhat public, at least on the internet, that the Senate was looking into extending the tax credit.  However what most people didn't realize was that it was not to extend the credit to potential homebuyers, but to extend the mandatory close date of June 30th.  In other words, for borrowers that had entered into an agreement by April 30th they needed to close that loan by June 30th.  On June 29th we in the industry were notified that the House did not pass the extension, it had failed by 2 votes (I have yet to find out who voted it down).  So now the mad rush continues and what a hair pulling experience this became. Tempers were flying, frustration levels hit a new high and I have heard that even tears were shed. 

Now where the confusion continues is somewhere between June 30th and July 1st, the House reconvened and passed the extension (of course after the damage was done) to a close date of September 30th.  Again, this is for closing existing loans only, not for new loans.  So since I can already hear the next question, let me answer it now.  Yes, if you have a contract dated on or before April 30th and you can close before September 30th, technically you would be eligible for the tax credit.  However, you better have a good reason why you waited 3 months before applying for your loan application!

With that now out of the way, let me leave you with this.  Rates are at a 50 year low, what are you waiting for? Go buy a house!! This is the closest we will get from legally stealing money.  Some APR's are as low as 3.75%!

If you think you are ready be sure to get pre-approved at www.centerpointemortgage.com/getpreapproved